Do lenders have to disclose annual percentage rates (APR) in loan agreements?

Lenders are required to disclose the Annual Percentage Rate (APR) in loan agreements as mandated by the Truth in Lending Act (TILA), which is implemented by Regulation Z. This regulation was established to ensure that consumers are provided with clear and comparable information regarding the cost of credit. The APR is a crucial measure because it represents the total cost of borrowing on an annual basis, including the interest rate as well as certain fees that may be charged over the life of the loan. By disclosing the APR, lenders enable borrowers to more easily understand and compare the costs associated with different loan offerings, fostering transparency and informed decision-making. This requirement applies to most consumer loans, promoting fairness in lending practices.